Positive sentiments regarding President Donald Trump’s announcement of a Bitcoin reserve haven’t translated all that well to its price. The asset has struggled to hold its position over the $90,000 price point and has only weakened over the weekend.
It seems as if Trump’s advice to “never sell your Bitcoin” hasn’t been enough for investors to hold on to their position in the asset. Also, some of the key economic indicators are due to be out this week. The indicators are expected to provide a glimpse of the current state of the economy in the US, which may influence market dynamics and volatility.
Senior portfolio manager at Allspring Global Investments, Bryant VanCronkhitein, stated in a recent report on March 9, 2025, “The market still wants the Fed to come to the rescue… Until inflation and inflation expectations come down, the Fed is handcuffed.”
Key Economic Events This Week:
-January #JOLTS Job Openings data – Tue
–#EIA Short-Term #Energy Outlook – Tue
-February #CPI Inflation data – Wed
-Initial Jobless Claims data – Thu
-February #PPI Inflation data – Thu
-MI Consumer Sentiment data – Fri👀 on #bitcoin#BTC $82.200 pic.twitter.com/4MegWmmnlM
— The Long View – Brickell (@Crypto_Brickell) March 10, 2025
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Key Market Indicators to be Released This Week
The Consumer Price Index (CPI) for February will be released on March 12, 2025. As a primary indicator of inflation, this instrument measures the average change of price over time for a basket of goods and services. Historically, a higher CPI has resulted in downward pressure being exerted on Bitcoin prices. Case in point, Bitcoin faced a negative price movement following elevated CPI figures in February.
VanCronkhitein emphasizes, “A hot CPI print will likely scare the market.”
The Producer Price Index (PPI) will be released on March 13, 2025. This index provides an understanding of producer-based inflation by measuring how the selling price for domestic producers changes over time. A rise in the PPI can lead to tighter monetary policies, which may affect risk assets such as Bitcoin as investors move to more stable options.
On March 11, 2025, the Job Openings and Labor Turnover Survey (JOLTS) will be made available to the public. The survey is intended to analyze the level of open positions and available labor in the US. A healthy labor market increases spending, which can lead to inflation, while a weak market may create troubling headwinds for growth, which can be damaging for investors and the price of assets like Bitcoin.
Also, a preliminary analysis of the Customer Sentiment data is to be released on March 14, 2025. Here, the analysts attempt to gouge investor confidence regarding the prevailing economic situation. High confidence spurs spending, driving growth and inflation. Conversely, low sentiment signals economic caution, curbing spending and affecting assets like cryptocurrencies.
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Impact On Bitcoin And Crypto
With all these economic indicators releasing the same week, the crypto landscape is going to get a whole lot complex for Bitcoin investors. Indicators like the CPI and PPI are influential and hold the power to sway the Federal Reserve’s monetary policy decisions.
If in case the indicators show higher than expected levels of inflation, the FED may tighten monetary policies, thereby making the Dollar strong and applying downward pressure on Bitcoin.
Alternatively, Bitcoin could stabilize and might even appreciate if the data suggests a controlled inflation and labor market.
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Key Takeaways
Bitcoin struggles despite Trump’s Bitcoin reserve announcement.
Key economic indicators releasiong this week may impact Bitcoin’s price.
High inflation data may lead to tighter monetary policies, weakening Bitcoin.
